COVID-19 Highlights Need for a Core System That Enables Your Evolving Digital Strategy

Living in unprecedented times, as these days are, individuals and businesses alike have had to re-evaluate plans, goals and even daily routines. We’ve all heard the saying: “The only constant in life is change.” It certainly rings true in the uncertain era of COVID-19, where credit unions are impressively rising to the challenge of providing a sense of stability to their members. Adaptability is key, which means continually evolving your approach – and having a core system that not only enables but encourages innovation in your digital strategy. It is imperative now and into the future.

A credit union’s core platform is more than just the foundation for day-to-day operations – the core serves as the infrastructure for new capabilities. As credit unions strive to serve their members, individual organizations will develop their own unique approaches. A core’s open API, for instance, means there are no limits to third-party integrations. This open architecture allows the credit union the freedom to choose and seamlessly integrate the solution that best fits their unique needs, which includes incorporating new capabilities.

For example, Nutmeg State Financial Credit Union in Rocky Hill, Conn., was able to connect its core to a new scheduling tool that utilized its core data to move its branches to an appointment-only process for members in a mere 48 hours when the pandemic hit. This quick move enabled the credit union to keep its branches open while controlling the occupancy volume to comply with COVID-19 social distancing mandates.

Today, most credit unions are faced with the new challenge of requiring members to wear face coverings in the branch to comply with public health measures. Prior to COVID-19, could you have even imagined walking through a credit union’s doors wearing a mask?

“Two months ago, we don’t let you in [to the branch] if you’re wearing a mask, and now, we don’t let you in unless you are wearing a mask,” Todd Sheffield, CEO of Community First Credit Union based in Santa Rosa, Calif., said.

That said, Community First engineered a brilliant solution using its core processor. Upon a member’s arrival at a Community First branch, the QR code on the back of their ID is scanned and sent directly to the teller. This scanning process allows staff to easily recognize members while upholding necessary safety protocols – such as wearing a mask inside.

“The story is how powerful their program is, that we were able to just come up with something on our own using some of the tools that they have,” Sheffield said, referring to their core’s capabilities.

A side effect of many credit union branches temporarily closing their doors or limiting hours due to stay-at-home orders is that many financial institutions are experiencing record demand for online and mobile banking. Even the most technology-resistant credit union members have had to delve into digitally accessing their accounts.

PSECU in Harrisburg, Pa., for instance, experienced record high logins during the COVID-19 pandemic – including a day that more than doubled its typical daily digital banking logins, going from 195,000 logins and then the next day experiencing a record 401,178 logins. PSECU noted that its core system handled the sudden shift in volume extremely well – which was vital to continuing to serve members during an extremely challenging time.

With an increased demand for mobile banking, there is a need for around-the-clock uptime in your core capabilities. Eliminating disruption in access can enhance members’ overall confidence and trust in your credit union. And that’s exactly what PSECU experienced during the pandemic thanks in part to its core’s capabilities.

It’s no secret that the core platform is the most important technology in a credit union’s operations. Everything touches the core – it natively offers the functionality credit unions need to serve their members in good times and challenging times. CPM Federal Credit Union, based in North Charleston, S.C., converted to its core in May 2019. It cites the intuitiveness and ease-of-use of this new system for driving a significant increase in employee satisfaction, as well as the system’s ability to streamline and improve operations.

As the industry evolves, especially during unimaginable times like the coronavirus crisis, having a core provider that is open to collaboration leads to more native functionality to support the evolution of your credit union’s digital strategy. With input from credit union partners, a proactive core can promptly address industry changes that arise – a pandemic included, which helped offer innovative mortgage and loan deferral solutions, as well as an option to remove Regulation D limitations.

Credit unions need to feel a sense of partnership with their core provider as they work in tandem to navigate new circumstances, all with the ultimate strategic goal of serving credit union members no matter the situation. Subsequently, implementing a core processing system that encourages collaboration with partners and the evolution of your digital strategy is vital – now more than ever. Your core solution should enable your credit union to do what credit unions do best: Serve your members with genuine care.

John Landis is Founder and Chairman for the San Diego-based Corelation, Inc.